Bitcoin Vs Cardano
Bitcoin vs Cardano, the original digital cryptocurrency, founded in 2009, vs one of its newest competitors, founded only in 2017, but already making a very big name for itself in the crypto world. Despite its youth, Cardano has already climbed the rankings in terms of market cap. Read this 2021 Cardano (ADA) vs Bitcoin (BTC) comparison to learn what they each are, their similarities and differences and important considerations like energy consumption, price, distribution and security. You can also check out our list of the top Bitcoin vs Cardano brokers below.
Top Bitcoin & Cardano Trading Brokers
#1 - Pepperstone
Why We Chose Pepperstone
Pepperstone continues to prove itself as one of the most trusted crypto brokers. Although its selection of digital tokens is average, you can trade popular cryptos like Bitcoin and altcoins like Ripple with up to 1:10 leverage, while its crypto indices provide a holistic view of the digital currency markets not found on most day trading platforms.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Coins: BCH, BTC, ETH, LTC, DASH, ADA, LINK, DOGE, EOS, DOT, XRP, XLM, XTZ, UNI, BNB
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 30, ETH 0
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
About Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
Pros
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
- There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
Cons
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
#2 - IC Markets
Why We Chose IC Markets
IC Markets offers 20+ cryptocurrencies which are tradable via CFDs, including lesser-known tokens such as Avalanche, Kusama and Uniswap. Commission-free trading is available, and experienced crypto traders can access high leverage up to 1:200 in the MetaTrader platforms.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- Coins: BTC, BCH, DOT, DSH, EMC, EOS, ETH, LNK, LTC, NMC, PPC, XLM, XRP, ADA, BNB, DOG, UNI, XTZ
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 42.036
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit: $200
- Regulator: ASIC, CySEC, FSA
About IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
Pros
- IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
- IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
Cons
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
- Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
#3 - Eightcap
Why We Chose Eightcap
Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.
"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."
- DayTrading Review Team
- Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: $12 (BTC)
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, TradingView
- Minimum Deposit: $100
- Regulator: ASIC, FCA, xCySEC, SCB
Pros
- Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
- With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
- After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
Cons
- Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
#4 - Exness
Why We Chose Exness
There is a small range of popular crypto tokens paired with fiat currencies available, with zero swap fees and no commissions in the Standard account. Trading is available via desktop or mobile apps, and deposits via crypto are also available in some countries.
"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."
- DayTrading Review Team
- Coins: BTC, LTC, ETH, XRP, BCH, SOL, SNX, UNI, BAT, DOT, XTZ, ADA, BNB, ENJ, FIL, DOGE, COMP, THETA, AAVE, LINK, IOST, CAKE, MATIC, HT, MANA, HBAR, INCH
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: Floating
- Crypto Lending: No
- Crypto Staking: No
- Platforms: Exness Trade App, MT4, MT5, TradingCentral
- Minimum Deposit: $10
- Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
About Exness
Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.
Pros
- Local payments are available, plus deposits in BTC and USDT
- Experienced strategy providers can open social trading accounts, with monthly commissions up to 50%
- The broker is accessible for beginners with low minimum deposits from $10 and flexible payment methods
Cons
- Unlike most competitors, Exness doesn't provide its own education section
- There are no promotional deals or loyalty schemes for high-volume day traders
- There are several regional restrictions for retail traders including the USA, Europe and the UK
#5 - eToro
Why We Chose eToro
eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."
- DayTrading Review Team
- Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 1%
- Crypto Lending: No
- Crypto Staking: Yes
- Platforms: eToro Web, CopyTrader, TradingCentral
- Minimum Deposit: $50
- Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
About eToro
eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.
Pros
- eToro has bolstered its investment offering, most recently with new crypto assets, now offering over 90 digital currencies
- Top copy traders can receive annual payments up to 1.5% of assets under copy in the broker's Popular Investor Program
- Exciting investment portfolios are available covering traditional market trends as well as tech, crypto and more
Cons
- Traders will face currency conversion fees for account denominations other than USD
- There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
- The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
What Is Bitcoin?
Before delving deep into Bitcoin vs Cardano, let us first explore Bitcoin, the world’s first decentralized, digital currency, by itself. The crypto was announced back in 2008 and a person or group, going by the name Satoshi Nakamoto, made an announcement to the cryptography mailing list at metzdowd.com, stating “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third parties”. This whitepaper went on to become the Magna Carta for Bitcoin and all cryptos today.
Following the first blocks being mined on January 3rd and 8th, Bitcoin mining and the blockchain began in earnest as they are today. Bitcoin, and all the cryptos that were created following its release, experienced steady growth in the early years. 2017 saw the start of the first crypto bubble where all prices soared and Bitcoin hit an all-time high of $19,783.06. Following this, prices fluctuated as bubbles came and burst and as recently as September 2021 Bitcoin hit a price of $50,128. Today’s Bitcoin price can be found on CoinMarketCap.
Comparing Bitcoin vs Cardano’s basic objectives, Bitcoin is a list of transactions. These transactions are stored on something known as the blockchain. Bitcoin itself has no physical form; it is purely digital. The blockchain consists of a series of statements, stating information such as person X sent Bitcoin to person Y. All this information is stored in blocks and each block is verified by miners, who ensure each transaction is legitimate and are rewarded with new BTC tokens for their effort.
Many people like to use Bitcoin as a store of value and a way to get rich. Those who got in early experienced huge profits during the initial crypto bubbles. Even today, large fluctuations in the price of Bitcoin presents opportunities for traders to make a profit. On top of this, lots of online businesses offering goods and services accept Bitcoin as a form of payment. Even some well-known brands such as Expedia allow BTC as a payment option for their holidays. The growth and strength of Bitcoin were further highlighted in June 2021 when El Salvador became the first country to accept Bitcoin as legal tender.
What Is Cardano?
Comparing Bitcoin vs Cardano, the latter first entered development in 2015, built by a team spearheaded by Charles Hoskinson, the co-founder of Ethereum. Cardano was intended to be an alternative to Ethereum, offering many of the same applications as the crypto giant, such as smart contracts. However, Cardano implemented updates to the Ethereum model in a bid to out-do its inspiration.
This new blockchain moved away from the energy-intensive proof of work system in favour of the eco-friendly proof of stake system. This meant that Cardano’s carbon footprint was significantly smaller than rival crypto coins and led to it being referred to as a ‘green coin’.
Both Bitcoin vs Cardano benefitted from the DeFi boom, the latter was founded then and reached a peak value of $1.0797 at the beginning of 2018. However, the price soon dropped back to less than $0.05. Cardano started to grow consistently when news began emerging of the immense environmental impact of crypto coins like Bitcoin and Ethereum.
The news saw green coins thrive and, soon after, Cardano hit an all-time high of $2.9634. The Cardano blockchain can be used to build smart contracts and create decentralized applications (DAPPs). The Cardano coin, ADA, can be used as a store of value or added to a stake pool, which leads to rewards through the proof of stake system. Some companies also accept Cardano as a form of payment, though it is not common.
Bitcoin And Cardano Similarities
Although they are two very different cryptocurrencies, Bitcoin vs Cardano do share some similarities:
Storage
The storage mechanisms for Bitcoin vs Cardano are much the same. As digital coins, users need suitable wallets to store their cryptocurrency and these come in a variety of forms. The two main categories are hot or cold wallets.
A hot wallet is connected to the internet in some way, while a cold wallet is offline. Typically, cold wallets are more secure as they need to be physically stolen, while hot wallets can be hacked. Within both categories, there are forms of software, hardware and paper wallets. Both Bitcoin and Cardano can be stored in any of these.
How They Are Traded
Bitcoin vs Cardano are both traded on the majority of crypto exchanges. This is because, by market cap, they are the first and fourth largest cryptos available. The range of exchanges offering the two coins means that different methods can be used to trade each of them.
For example, on Kraken, Bitcoin and Cardano can be traded with leverage (up to 1:5). This means that, if a trader were to put down £100, they could open positions worth £500. Spot trading is also possible for both cryptocurrencies on a variety of exchange platforms.
Distribution
Bitcoin vs Cardano both subscribe to the same ideology for supply and distribution. While some cryptocurrencies, such as Ethereum, have no limit on the number of coins that can be in circulation, this is not the case for Bitcoin or Cardano.
For Bitcoin, the token limit is 21 million, while, for Cardano, it is 45 billion. There is a large difference between the two totals but the idea behind them is the same. Limiting the total number of coins creates scarcity, which in turn means that price increases are almost guaranteed.
Bitcoin And Cardano Differences
Bitcoin and Cardano have some very big differences:
Regulation
The regulation presents a big difference between Bitcoin vs Cardano. Bitcoin, since its inception, has prided itself on being an unregulated entity, free from the input of any regulatory body or central bank. While this boosted its popularity at the start, it has led to some concerns and countries like China and South Korea have begun to crack down on cryptocurrency business and enforce regulation.
Cardano, on the other hand, took a different approach. The crypto is regulated by the Securities Exchange Commission (SEC). This is part of their drive towards regulatory compliance, one of their goals as a cryptocurrency platform.
Verification System
Bitcoin vs Cardano use two different systems to verify transactions. Bitcoin follows the original proof of work system, where network participants, known as miners, expend large amounts of energy and computing power to verify transactions and add them to the blockchain.
Cardano uses the proof of stake system whereby, instead of focussing on energy expenditure, validators put up a stake of their cryptocurrency to attest to the validity of a block in the blockchain. Validators earn an amount of crypto as a reward, just as miners do in Bitcoin’s system.
Transaction Speed
Bitcoin vs Cardano’s transaction speeds vary greatly. Bitcoin can handle only five transactions per second, it is known to be one of the slower coins, though this has never significantly affected its price.
In contrast, Cardano can handle an astonishing 257 transactions per second, eclipsing Bitcoin’s capabilities. On top of this, Cardano is releasing a new scaling system known as Hydra 2 that promises to boost processing times even further. Cardano founder Charles Hoskinson has even come out and claimed that the network will eventually be able to process over one million transactions per second.
Market Capitalisation
Bitcoin vs Cardano’s market cap comparison presents a stark difference. Bitcoin is by far the largest of all cryptocurrencies by market cap, with an astounding $780 billion. No matter which graph, chart or table you look at, Bitcoin comes out on top.
Cardano has a market cap of closer to $70 billion, over 11 times smaller. Even so, Cardano remains the fourth-largest cryptocurrency by market cap and has shown rapid recent growth. At the end of 2020, it sat at only $5.5 billion. Even with this growth, Cardano’s market cap reaching Bitcoin’s does seem unlikely in the short term.
Value
When comparing Bitcoin vs Cardano, it is impossible not to consider the difference in the values of the two coins. While Bitcoin sits around $43,000 and has hit highs of $50,000, Cardano has a value of only around $2.
Price charts do show that Cardano has grown rapidly over the past year. At the end of 2020, the value of one ADA coin was only £0.184. Since then and since the energy issues of other coins like Bitcoin have been highlighted, Cardano has shown strong growth rates. Current forecasts predict that Cardano could reach $10 by 2025, but this is still far off Bitcoin’s current value.
Energy Usage
In terms of Bitcoin vs Cardano’s energy usage, they couldn’t be further apart. Taking the annual statistics, Bitcoin, with its proof of work system, uses a whopping 126.09 terawatt-hours per year. That is the same amount of energy that Pakistan uses each year (a country with a population of 225 million). Cardano uses only 6 gigawatt-hours per year, a tiny fraction of Bitcoin’s usage. This lower energy consumption is one of the main reasons Cardano has grown in popularity.
Pros Of Bitcoin For Traders
- High volatility
- High trading volume
- Most valuable cryptocurrency
- Traded on almost every exchange
- Oldest and most established crypto
- Highest market cap of any digital currency
Pros Of Cardano For Traders
- Smart contracts
- Regulated by the SEC
- Quick transaction speed
- Low energy consumption
- Third-generation blockchain
- Proof of stake validation system
Final Word On Bitcoin Vs Cardano
Bitcoin vs Cardano, two cryptocurrencies with very different ages and missions. While Bitcoin focuses solely on being a medium of exchange and accruing value, Cardano aims to solve many of the problems facing crypto. With its lower energy consumption and regulation compliance, Cardano is presenting investors with some compelling reasons to trade with them.
FAQs
Does Bitcoin Vs Cardano Use More Energy?
Bitcoin uses a lot more energy than Cardano. This is because the proof of work protocol is very energy-intensive, by design.
Can You Mine Bitcoin Vs Cardano?
As Bitcoin uses the proof of work system, it can be mined. Cardano, on the other hand, cannot, validators need to put up a stake of Cardano as part of the proof system to earn rewards.
Where Can You Find Bitcoin Vs Cardano’s Value?
Both values can be found on CoinMarketCap. Other information such as market cap, price history and 24-hour trading volume is also available.
Is Bitcoin Vs Cardano A Better Investment?
There is no simple answer to this. Bitcoin has proven itself over time to be the most popular but it is unknown what Cardano could grow to.
Where Can I Trade Bitcoin Vs Ethereum?
There is a wide range of exchanges trading Bitcoin and Cardano. Some popular ones include Binance, Coinbase and Kraken.